Ex. Engineer Construction Division-II, PWD, Orai, Kanpur V. Dy. Commissioner of Income Tax (TDS), Kanpur

ITA 246/LKW/2015

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 4607 (ITAT-LUCKNOW)
• Duration Of Justice: 10 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-03-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 10-02-2016
• Assessment Year: 2009-2010
• Appeal Filed On: 21-04-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Opportunity of being heard

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL LUCKNOW BENCH B, LUCKNOW BEFORE SHRI SUNIL KUMAR YADAV, JUDICIAL MEMBER AND SHRI A.K. GARODIA, ACCOUNTANT MEMBER ITA NO.246/LKW/2015 ASSESSMENT YEAR 2009-10 DCIT(TDS)/10-11, KANPUR VS EX-ENGINEER CONSTRUCTION DIVISION-II, PWD, ORAI TAN KNPCO1440F (RESPONDENT) (APPELLANT) SHRI PRADEEP MEHROTRA, ADVOCATE APPELLANT BY SHRI AMIT NIGAM, CIT DR RESPONDENT BY 10/02/2016 DATE OF HEARING 15 /0 3 /2016 DATE OF PRONOUNCEMENT O R D E R PER A. K. GARODIA, A.M. THIS IS AN ASSESSEES APPEAL DIRECTED AGAINST THE O RDER OF LD. CIT (A)-II, KANPUR DATED 14.01.2015 FOR THE FY 2008-09 IN RESPE CT OF DEMAND OF INTEREST U/S 201(1A) OF THE INCOME TAX ACT, 1961 FO R 1 ST QTR TO 4TH QTR OF F. Y. 2009 10 IN CONNECTION WITH FILING OF FORM N O.26Q. 2. THE GROUNDS RAISED BY THE ASSESSEE ARE AS UNDER: - 1. THAT THE LEARNED ASSESSING OFFICER HAS ERRED ON FACTS AND CIRCUMSTANCES OF THE CASE IN PASSING THE ORDER FOR PAYMENT OF INTEREST ON ALLEGED LATE PAYABLE OF T.D.S. BY TH E ASSESSEE. 2. THAT THE LEARNED ASSESSING OFFICER HAS ERRED ON FACTS AND IN LAW IN HOLDING THE ASSESSEE AS DEFAULTER WITHIN THE MEANING OF SECTION 201(1)/206C(7) OF THE INCOME TAX ACT. 2 3. THAT THE ORDER PASSED U/S 201(1)/20(1A) DTD. 18. 10.2010 IN EXCESSIVE AND NOT BASED ON CORRECT INTERPRETATION O F LAW. 3. LD. AR OF THE ASSESSEE SUBMITTED THAT THAT EVEN IF THERE IS DELAY IN DEPOSIT OF TDS OF THE ASSESSEE, INTEREST SHOULD BE COMPUTED FOR THE PERIOD OF DELAY ONLY AND THE CALCULATION BY THE ASSESSING OFFICER IS NOT PROPER AND THEREFORE, THE MATTER MAY BE RESTORED BACK TO HIS F ILE FOR CORRECT COMPUTATION OF INTEREST PAYABLE IN THE PRESENT CASE . 4. LD. DR OF THE REVENUE SUPPORTED THE ORDERS OF AU THORITIES BELOW. 5. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS. WE FIN D THAT IT IS NOTED BY THE ASSESSING OFFICER IN PARA 2 OF HIS ORDER PAS SED BY HIM U/S 201(1A) OF THE ACT ON 18.10.2010 THAT WHERE THE TDS IS DEDU CTED BY OR ON BEHALF OF THE GOVERNMENT, TDS HAS TO BE PAID TO CENTRAL GO VERNMENT ON THE SAME DAY WHEREAS IN THE CASE OF ASSESSEE, TDS HAS B EEN PAID ON THE 7TH DAY OF THE NEXT MONTH. WE FIND THAT AS PER RULE 30 OF THE INCOME TAX RULES, 1962, ALL SUMS DEDUCTED IN ACCORDANCE WITH T HE PROVISIONS OF CHAPTER XVII-B BY AN OFFICE OF GOVERNMENT SHALL BE PAID TO THE CREDIT OF THE CENTRAL GOVERNMENT ON THE SAME DAY WHERE THE AM OUNT IS PAID WITHOUT PRODUCTION OF AN INCOME TAX CHALLAN AND IT AS TO BE PAID ON OR BEFORE SEVENTH DAY FROM THE END OF THE MONTH IN WHI CH THE DEDUCTION IS MADE WHERE TAX PAID IS ACCOMPANIED BY AN INCOME TAX CHALLAN. IN THE PRESENT CASE, IT IS NOTED BY THE ASSESSING OFFICER IN PARA 2 OF THE ORDER PASSED BY HIM ON 18.10.2010 THAT TDS HAS NOT BEEN D EPOSITED THROUGH BOOK ENTRY BY THE TREASURY OFFICER AND THE SAME HAS BEEN DEPOSITED ON 7 TH OF THE NEXT MONTH BY CHALLANS. HENCE, IN OUR CONSI DERED OPINION, AS PER RULE 30 OF INCOME TAX RULES, 1962, WHERE THE TAX PA ID IS ACCOMPANIED BY INCOME TAX CHALLAN, THE DUE DATE OF PAYMENT IS ON O R BEFORE 7TH DAY FROM THE END OF THE MONTH IN WHICH THE DEDUCTION IS MADE EVEN IN CASE OF GOVERNMENT AND THE REQUIREMENT OF PAYMENT ON SAME D AY IS IN THOSE CASES WHERE TAX IS PAID WITHOUT PRODUCTION OF INCOM E TAX CHALLAN. 3 6. UNDER THESE FACTS, WE FEEL IT PROPER THAT THIS M ATTER SHOULD GO BACK TO THE FILE OF THE ASSESSING OFFICER FOR FRESH DECI SION REGARDING COMPUTATION OF INTEREST PAYABLE BY THE ASSESSEE U/S 201(1A) OF THE ACT READ WITH RULE 30 OF INCOME TAX RULES, 1962.THEREFORE, WE SET ASID E THE ORDER OF LD. CIT(A) AND RESTORE THE MATTER BACK TO THE FILE OF T HE ASSESSING OFFICER FOR FRESH DECISION IN THE LIGHT OF ABOVE DISCUSSION AFT ER PROVIDING REASONABLE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. 7. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. (ORDER WAS PRONOUNCED IN THE OPEN COURT ON THE DAT E MENTIONED ON THE CAPTION PAGE) SD/- SD/- (SUNIL KUMAR YADAV) (A.K. GARO DIA ) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 15/03/2016 AKS COPY OF THE ORDER FORWARDED TO : 1.THE APPELLANT 2.THE RESPONDENT. 3.CONCERNED CIT 4.THE CIT(A) 5.D.R., I.T.A.T., LUCKNOW ASSTT. REGISTRAR